The opportunity and challenge for the OCTG manufacturers going out

Opportunity and challenge

In recent years, the international exploitation and transportation of oil and gas is in the peak, the market potential is huge, which provides a rare market opportunity opportunity for China's oilfield pipes and supply. At the same time, due to the complexity of the global political and economic situation, it also brings the risks and challenges for octg manufacturers “going out”.
As a new force in oil pipeline supply, TICO oiltubulars expand the international market actively in recent years, achieving remarkable achievements and exploring a lot of successful experience for the oil pipeline enterprises "going out".

The international political and economic instability become the biggest challenge for octg manufacturers going out

In the process of economic globalization, more and more octg manufacturers follow the trend of "go out" to participate in the international market competition. However, compared with the domestic market, the international market is broader, the competition is more intense and the risks and challenges are more prominent. Generally speaking, the international octg market is facing the challenge of political risk, financial risk, market risk, exchange rate risk, legal risk, safety and environmental risks, labor risk, cultural practices and so on.
After the international financial crisis, the economic pattern of the world is in a major adjustment, the commodity price shock upstream, the European debt crisis intensifies, dollar currency rate continues to decline. Especially the world economic recovery is slowing and the growth of international trade is dropping. Overall, there are more and more uncertain factors in oilfield pipes, so the business risk is growing.
In addition, competitions among the octg manufacturers are becoming increasingly fierce with engineering profits shrink and the market risk increases. With the impact of the world financial crisis continues to spread and the degree of global economic integration is deepening, fierce competition in oilfield pipes is caused among countries, which increases the difficulty to develop the octg market.

Strengthen risk management and control to enhance the ability to respond

With the increasing competition in the octg industry, the pipeline engineering construction has more and more challenges, so the effective control of risk becomes the inevitable choice for octg manufacturers.
In the process of "going out", our company follow the principle of "safety, effective, sustainable" , pay attention to establish risk precaution system, constantly enhance the ability to resist and defuse the risks. In order to effectively prevent and control the risk of security, reduce cost of enterprises, our company promotes international business localized and regulates the localization project management.

Conclusion

It thus appears that facing opportunities and challenges of octg industry, our manufacturers need to recognize the reality to seize the opportunity, adjust the strategy actively, adhere to the policy of "going out", and enhance the competitiveness to open oilfield market.